How old is too old to live with mum and dad? Report reveals what parents really think

It's no secret that homeownership has become a tough slog for Millennials and Gen Z. A new report looks at how the latter generation is navigating what many would consider a pipe dream.

New research from Great Southern Bank reveals that many younger Australians are getting clever about their finances - from leveraging homeownership for additional income to receiving help from parents and loved ones.

The insights are drawn from the bank's 'No Place Like Home' report, which explores the Australian experience after stepping onto the property ladder.

One factor emerged as crystal clear: it's tougher than ever to go it alone. Help is a necessity.

But where does that leave parents?

Thankfully, the data points to Boomers and Gen X being on board with supporting their children to get on the property ladder - and Gen Z are more than willing to pay it back.

The age parents think their adult kids should move out

The No Place Like Home report found the largest proportion of parents (at 41 per cent) were only willing to house their children until 25 years of age - ouch.

However, the data also shows that more Australians are open to their adult children living at home indefinitely, helping them save money and build a deposit.

Close to one in four parents (23 per cent) say they'd be happy for their kids to live at home forever.

This view is particularly strong among Baby Boomers, where 40 per cent say they are willing to house their children for life.

There's also been an uptick in parents who would allow children to stay at home until age 35, up eight per cent from last year to 33 per cent.

Single mum Renee Brown started $50,000 in debt but worked with a broker on a plan that saw her buy her first home on NSW's Central Coast.

Moving back in with family was absolutely necessary to reach her goal.

"Living with family for a year was a crucial part of my savings process. As was changing jobs to increase my salary," said Ms Brown.

"I think it's important for anyone wanting to buy a home, particularly if they're not in the best or ideal financial position, to know that you can play the long game and win in the end".

The findings point to a broader shift in attitudes toward multigenerational living, with many families prioritising financial stability and long-term housing goals over traditional timelines for moving out.

The attitude of Gen Z may also be a factor, with the findings revealing they're determined to pay back the help they receive.

Less handout, more handshake

More and more young Aussies are choosing to repay the financial help they receive from parents when buying a home, essentially turning the support from a gift into a personal commitment.

The findings show that of homeowners who planned to pay financial help back, nearly half (44 per cent) say they plan to repay their parents as soon as possible, and almost a third (30 per cent) intend to repay the funds with interest.

Only 5 per cent say they won't be able to pay the money back to family or friends who helped.

"This is a natural evolution in how families are helping each other," said Rolf Stromsoe, Chief Customer Officer at Great Southern Bank.

"It's no surprise that many Australians need a helping hand to get into the property market - but what's striking is how committed they are to paying that support back.

"That will be reassuring news for parents who want to help their children buy a home but feel unsure about making a financial gift. In many cases, it's not a handout - it's a handshake."

Gen Z gets proactive about property possibilities

The report found that Gen Z doesn't view homeownership simply as a place to live - it doubles as a path to financial freedom, with them leveraging property to build more wealth.

More than a quarter (28 per cent) of homeowners say they are considering using their home as a source of income - but this figure jumps to 58 per cent among Gen Z homeowners.

Among this generation, 24 per cent would like to turn their home into an investment property, 19 per cent would like to rent out a room or the property, and 16 per cent would like to run a business from home.

"There's a proactive mindset among younger Australians. They're thinking entrepreneurially about how to make their home work harder for them," said Mr Stomsoe.

"Having a home is both a personal milestone and a launchpad to help build wealth or build a side hustle."

Ruby Lee Bingham, a 25-year-old childcare professional living in Mordialloc, Victoria, became a first-time homeowner late last year. She bought her perfect two-bedroom apartment after 11 months of searching, years of disciplined savings and a small inheritance.

Ms Bingham has plans to leverage her property as a source of additional income while she's overseas by renting it out, then using it as an investment property down the line once she is able to purchase her 'forever home'.

"We've always considered the long-term when looking to buy a home. We wanted something that suits our needs right now, including location and size, but will also act as an asset for us down the line," she said.

"Longer-term, I see it as a foundation of a portfolio I can grow over time. More people my age are starting to view their first home not just as a place to live, but as a way to create financial flexibility."